Mortgage Refinancing Activity Reaches 3-Year High

By Kerri Ann Panchuk

The number of mortgage applications filed in the U.S. edged up a slight 0.9 percent for the week ending July 20 as refinance activity hit a three-year high, an industry trade group said.

The Mortgage Bankers Association noted its refinance index grew 2 percent from the previous week, its highest level since April 2009. Meanwhile, home purchases slowed with the seasonally adjusted purchase index falling 3 percent from the previous week.

Refinance activity made up 81 percent of all mortgage applications, a slight increase from 80 percent a week earlier.

In addition, the 30-year, fixed-rate mortgage with a conforming loan balance held steady at 3.74 percent, its lowest rate in history. The 30-year, FRM for jumbo loans grew to 3.99 percent from 3.98 percent, while the 30-year, FRM backed by the FHA fell to 3.52 percent from 3.55 percent.

The 15-year, FRM fell to 3.07 percent from 3.12 percent, and the average contract interest rate for 5/1 ARMs declined to 2.68 percent from 2.71 percent.

See also:
Barbara Corcoran on Refinancing Do's and Don'ts
Despite Record Low Rates, Refinancing May Not Be Best Bet

%Gallery-160804%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.

Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.